Qualified Remodeler Magazine

FEB 2015

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: http://qualifiedremodeler.epubxp.com/i/469630

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Page 36 of 60

year. Eighty-one percent of our readers say their businesses will grow this year, nearly a quarter pegging their growth to exceed 20 percent. Improved consumer sentiment combined with a higher level of conf- dence and investment in marketing activities, particularly those related to new technology and the Internet are cited as key reasons for the optimism by those who ofered anonymous comments in the survey. "I am working on a more interactive website that allows my clients to order small jobs and change orders at my website," says one respondent, a remodeler in New England. Another remodeler, this one based in Maryland, relayed a fast-growth mentality in hot remodeling market. "I plan to keep making efciency changes, to hire people and close deals," the respondent stated. "Tere is a lot of work out there, so I plan to stay focused." A shortage of qualifed labor has been among the top challenges facing remodelers for at least three years. Tis year is no diferent. And it appears that many intend to trade up for better employees in the process of looking for more. Several said they intended to eliminate "dead weight" and redouble their eforts to fnd the right people. "I am attempting to weed out poor performing employees and hire competent people," said one. As data from Harvard's new report, "Emerging Trends in the Remodeling Market," shows, remodeling outlook varies greatly from region to region and state to state. Markets on the East and West Coast, particularly those experiencing vastly higher home prices, are doing very well, while others in the Midwest are growing, but at a more tepid pace. In any event, 2015, appears to be a good year for remodeling. | Solid Demographic Outlook Movers vs. NonMovers n Recent Movers n NonMovers Share of $500,000 Projects by Metro Baby boomers will continue to be the top prospects for remodelers going forward. A high mobility rate favors remodeling as it allows homeowners to sell and relocate to another part of the country for job or lifestyle reasons. Metros with strong job-growth numbers tend to have more remodeling activity. Notes: The pre-baby boom generation was born before 1945, leading baby boom in 1945-54, trailing baby boom in 1955-64, leading gen-X in 1965-74, trailing gen-X in 1975-84, and millennnial in 1985-2004. Tablulations use JCHS-adjusted weights. Notes: Recent movers bought their homes with the most recent calendar years. Estimates include owners in the lower-middle, middle and upper-middle income quintiles. Quintiles are equal fifths of homeowners aged 35-64 ranked by total household income. Tabulations of 2013 data use JCHS-adjusted weights. Source: Joint Center for Housing Studies, 2015. Share of Spending on Improvements Costing $50,000 or More in 2013 (Percent) 21.2% Leading Baby Boom 15.3% Pre-Baby Boom 26.6% Trailing Baby Boom 20.9% Leading Gen-X 13.4% Trailing Gen-X 2.6% Millennial Homeowner Spending in 2013 = $192 B 2005 2007 2009 2011 2013 $2,892 $2,334 $3,702 $2,651 $2,961 $2,209 $2,923 $2,151 $3,104 $2,378 Top Five Markets Bottom Five Markets Boston Washington, D.C. New York Providence San Jose Cleveland Kansas City Jacksonville Pittsburgh St. Louis 50.1% 44.6% 43.9% 42.3% 41.8% 15.4% 15.2% 14.2% 13.6% 13.2% PROFITS: Remodeling Market Forecast 2015 36 February 2015 QR QualifiedRemodeler.com | ForResidentialPros.com

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